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Empire Resorts Executes Definitive Consolidation Agreements

Empire's Chairman and Chief Executive Officer, Robert Berman, said that the consolidation will complete the redirection of the Company that management began over a year ago. "Our activities are now focused entirely on the development of legal gaming venues in New York State, including the implementation of up to 1,800 video lottery terminals to be installed by the New York State Lottery at the Raceway and the development of a $500,000,000 Native American Casino in partnership with the Cayuga Nation of New York adjacent to the Raceway's grandstand."

According to Morad Tahbaz, a member of the Empire Board who will serve as President of both Empire and Catskill during the transition, Empire will assume complete control over managing the effort to develop a multi-dimensional gaming resort, including horse racing, video lottery terminals and a Native American owned casino, at the Raceway. An application has been filed with the Bureau of Indian Affairs to approve the transfer of approximately thirty acres of land adjacent to the Raceway to the Cayuga Nation of New York (the "Cayuga Nation") for purposes of the casino. The New York Lottery has approved the Raceway as a venue for 1,800 video lottery terminals. With its close proximity to New York City, the Raceway is within convenient driving distance of an estimated 23 million people, one hour closer than any casino in Connecticut or Atlantic City. Tahbaz said that he felt that the consolidation would be in the best interests of all concerned, "We felt that it was appropriate at this juncture to ensure that all the operations were under the control of a single management team and had had the full range of resources available to the public company."

Closing of the transaction is expected by late October 2003 and is subject to various conditions, including receipt of a fairness opinion and approval by the Company's shareholders.

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